Henry Fayol’s 14 Principles of Management:

EQUITY
Jared Aaramon Juralbal & Mariel Angela Sorolla
Who is Henri Fayol?
- French coal-mine engineer, director of mines and modern management
theoretician.
- His scientific management theory forms the base for business
administration and business management.
- Fayol's "14 Principles" was one of the earliest theories of management
to be created, and remains one of the most comprehensive. He's
considered to be among the most influential contributors to the modern
concept of management, even though people don't refer to "The 14
Principles" often today. (www.mindtools.com)
What is an organization?
An organization can be defined as a group of people who
collectively undertake certain actions such as planning,
arranging, coordination, structuring, administration, organizing,
management, logistics, and the like, in order to achieve a
predetermined goal. (www.businessdictionary.com)

A business organization is an entity aimed at carrying on

commercial enterprise by providing goods or services, to meet
needs of the customers. (www.uslegal.com)
What is equity?
eq·​ui·​ty | \ ˈe-kwə-tē

a : justice according to natural law or right

specifically : freedom from bias or favoritism

(www.merriam-webster.com)
In short...
FAIRNESS!
What is EQUITY and
how is different from
EQUALITY and
JUSTICE?
Equity, Justice, and Equality
● Equity is justice according to natural law or right, specifically freedom from bias or favoritism (Merriam-Webster).
● Equity is not equality because: 1) equality entails an assumption that treating everyone will benefit from the same
support. Conversely, equity provides different supports to pave way for people to have an equal grounding; 2)
equity requires a depth of understanding about what people need, but in the same breath providing these needs
in a manner that would even the playing fields. But more importantly, not on the disadvantage of others. On the
contrary, equality is simply giving a uniform support, and ultimately assuming the homogeneity of stakeholders at
hand.
● Equity is not justice because: 1) justice is the collective responsibility of a free and just society, to ensure that civil
and human rights are preserved and protected for each individual regardless of gender, race, ethnicity, nation of
origin, sexual orientation, class, physical or mental ability, and age. It can be considered as a scheme of law in
which every person receives his/her/its’ due from the system, including all rights, both natural and legal.
 LABOR CODE (P.D. No. 442)
Article 3

The State shall afford protection to labor, promote full

employment, ensure equal work opportunities
regardless of sex, race or creed and regulate the
relations between workers and employers. The State
shall assure the rights of workers to self-organization,
collective bargaining, security of tenure, and just and
humane conditions of work.
What is equity in management?
The management principle of equity often occurs in the core
values of an organization. According to Henri Fayol, employees
must be treated kindly and equally. Employees must be in the
right place in the organization to do things right. Managers
should supervise and monitor this process and they should treat
employees fairly and impartially. (www.toolshero.com)
How to exercise equity in the management?
● avoid all forms of partiality
● treat all staff equally
● deny no staff promotions
● encourage weak staff to shape up
● advise staff regularly on how to grow on the job
● mentor staff
● avoid favoritism
● build up an unbiased attitude
● disallow gossip
● staff are rewarded or punished based strictly on their commitment, faithfulness, and
productivity
(www.researchgate.net)
Examples of equity
violation
● Sexual Harassment
● Discrimination
● Mobbing - overt behavior such as rudeness and physical intimidation
● Illegal dismissal

(Ontario Human Rights Commission, 2008)

Interview
Interviewee:
Mary Angelic Saavedra
- Admerex Solutions, Inc
- Address: 612-628 Sultan, Mandaluyong, 1550 Metro Manila
- Position: Risk and Compliance Associate (RCA)
- Type of Company: Business Process Outsourcing (BPO)
Question:
How is equity exercised by your management?
ANSWER:

“In our company, equity is exercised by following the usual

requirement before endorsing the employee, which is passing the
written exam, initial interview, final interview, and giving the
following requirements ask by the management such as Resume,
NBI Clearance, SSS, Pag-ibig, Philhealth, Transcript, diploma.”
Question:
How is equity exercised by your management?
ANSWER:

“Aside from giving fair salary, 13th month pay, Health Maintenance,
employees are also given incentives base on their performance.

As a Risk and Compliance Associate, I also make sure that

employees comply with the policy of the company to avoid risks
and practice due process with every type of violation.”
Jhocson Residences, Laundry, water station,
Cyber lounge
Picture during interview:
Question:
How is equity exercised by your management?
ANSWER:
“All employees undergo a process of screening which is an
interview with the executive assistant. After the preliminary
interview, the final interview will be given by the boss/owner.
There are no examinations for applicants. Moreover, all
employees are given fair and proper salary which are always
(except extraordinary circumstances) on time. On top of that, we
have Christmas bonuses and 13th month pays.”
Question:
How is equity exercised by your management?
ANSWER:
“In terms of labor division, works are divided on the basis of
position. Even if there is hierarchy in the office, the boss would
pose reminders for all employees regardless of position. This
means a transparent and equitable treatment for everyone.”
Analysis
● There is a due process which regulates human resources.
● There is an equitable treatment when it comes to wages, salary, bonuses, and
incentives.
● There is an effective and equitable division of labor which does not trample on
division of labor, subordination, and scalar chain.
References
https://www.researchgate.net/publication/281801296_Henry_Fayol's_14_Principles_of_Ma
nagement_Implications_for_Libraries_and_Information_Centres

http://www.ohrc.on.ca/en/iv-human-rights-issues-all-stages-employment/12-resolving-
human-rights-issues-workplace
QUESTIONS
● What happens in Business Management without equity?
● What happens when there is equity in Business Management?
● Why is equity important in Business management?
● What is the relevance of this principle to us Legal Management students?
Thank you for listening!